[Official Guidance]The EFAST2 Web Site Is Operational
Excerpt: "The Department of Labor (DOL), Internal Revenue Service (IRS), and the Pension Benefit Guaranty Corporation (PBGC) created EFAST to streamline the forms and the methods by which they are filed and processed." (U.S. Department of Labor)

[Guidance Overview]IRS Explanation of Requirements for Nonspousal Distributions
Excerpt: "This explanation should be provided to the nonspouse beneficiary no earlier than 180 days and no later than 30 days before making the distribution. Notice 2009-68 contains two sample notices that plans may give to nonspouse beneficiaries." (Wolters Kluwer)

[Guidance Overview]Keogh Plan Need Not Comply with ERISA to Be Exempt in Bankrup.tcy
In Re: Baker, Case No. 09-13144 (US 11th Cir., December 22, 2009). Excerpt: "A United States District Court has affirmed the decision of a bankrup.tcy court that Baker's Keogh plan was not exempt under Section 222.21(2)(a)(1), Florida Statutes. Baker was the sole participant in and beneficiary of a Keogh plan managed by Fidelity Investments, which had obtained letter rulings from Internal Revenue Service that the plan was 'acceptable under Section 401 of the Internal Revenue Code.'" (Cypen & Cypen)

[Guidance Overview]EFAST2 Credentials Are Signer Specific, Not Company Specific; Plan Sponsors Must Decide Who Will Sign the 5500
Excerpt: "You have been hearing about it and now it is here! The 2009 Form 5500 must be filed electronically. In order to file electronically, you must obtain credentials from the Department of Labor even if you already have a user ID and password for EFAST. EFAST2 is a completely separate system from EFAST. This ErisaALERT will address only the credentialing aspects. We anticipate a series of ErisaALERTs dedicated to the Form 5500 in the coming months." (ERISAdiagnostics Inc.)

Is Pension Inequality Growing?
Excerpt: "This brief documents and explores trends in pension participation by income. The first section discusses the relative importance of private pensions as a source of retirement income. The second section examines trends in pension sponsorship and participation rates. The third section explores why some individuals choose not to participate. The final section concludes that the shift to defined contribution plans has been a significant factor in the drop in coverage for low earners." (Center for Retirement Research at Boston College)

Intricately Linked: Pensions and Corporate Financial Performance (PDF)
17 pages. Excerpt: "[Towers] Perrin has developed this publication to update our 2003 guidebook, Pensions and Corporate Financial Performance -- Keeping Your Eye on the Ball. This new edition reflects the many changes that have since occurred in the environment of pension plan management. In addition, an upcoming companion publication will delve into more detail in each of the policy areas discussed here, focusing on specific actions that can be taken in these areas to achieve policy goals." (Towers Perrin)

What Can Investors Learn from a Dreary Decade?
Excerpt: "Two soul-searing bear markets have sent investors reeling -- and have severely tested the notion that the average person can save and invest enough to retire on her own." (USA TODAY)

[Opinion]National Institute on Retirement Security Responds to Washington Post January 2, 2010, Editorial
Excerpt: "What a contrast between The Washington Post's reporting and the editorial page on January 2nd. The front page told the sobering story of a 'lost decade' during which America's middle class saw no real gains in jobs, income, or net worth. But the editorial page implied that some members of the middle class have it too good - namely folks who teach our kids, keep our streets safe, and provide other public services." (National Institute on Retirement Security)

At The John Marshall Law School, we offer the only MS and LLM degrees in Employee Benefits in the country. Our new eClasses are created to utilize the advantages of remote learning while maintaining the highest standards of instruction. Students can complete assignments from anywhere, day or night. With new classes added each semester, eClasses are a great way professionals can keep current or earn an advanced degree in their field. E-mail 6winicza@jmls.edu for more information.

[Guidance Overview]SEC's Revised Executive Comp and Governance Disclosure Amendments for 2010
Excerpt: "For a compensation consultant who played a role in determining or recommending the amount or form of executive or director compensation and also provided additional services to a company, the proposed rules would have required the company to identify the consultant and to disclose the aggregate fees paid to the consultant along with a description of the additional services. The SEC's final rules include this requirement with modifications that limit the scope of the disclosures." (McGuireWoods LLP)

Dealing With Underwater Stock Options: Some New Twists on a Timeless Quandary (PDF)
3 pages. Excerpt: "Many of the issues companies face with regard to underwater options are timeless. Most companies feel they must take action to: restore the options' ability to provide a meaningful performance and retention incentive to holders who view out-of-the-money options quite negatively; promote fairness between holders of underwater options and new hires who receive at-the-money options with far lower exercise prices; limit the negative effect of underwater options when there are low levels of share reserves available under shareholder-approved plans." (Towers Watson)

Employee Ownership Update for January 4, 2010
NCEO Executive Director Corey Rosen discusses the following: A new NCEO survey on ESOP governance practices shows 13% of the respondents have an independent institutional trustee. Senator Bernard Sanders has introduced two bills to encourage employee ownership. There has been a lot of buzz about replacing traditional stock awards with performance shares. You can now apply for the Winning Workplaces awards. Corey will step down as director in 2011; NCEO will soon announce the new director. (National Center for Employee Ownership)

Copyright 2010 BenefitsLink.com, Inc.; except that you can
forward this email in full (including this boilerplate part) or
otherwise reprint this email in full (including this boilerplate
part) without obtaining our permission.